CTA/CPO Ratio Errors; NFA PQR and PR Filings

This month NFA put out a fantastic reminder about common CTA/CPO ratio errors and the obligations facing reporting firms. In particular they have laid out their expectations for CTA and CPO ratio reporting. Please consider the following directly from NFA as a number of CPOs and CTAs have been incorrectly reporting these financial ratios: 1) Ratios must be calculated using the accrual method of accounting CPOs and CTAs are incorrectly calculating these ratios because they are using cash basis of accounting. Both ratios must be computed using the accrual method of accounting and in accordance with U.S. generally accepted accounting…